Global Logistics Update: Ocean and Air Freight Market Trends - June 2022

Introduction

The global logistics industry continues to face significant challenges and changes as we move into the second half of 2022. From shifting trade patterns to ongoing congestion issues, freight forwarders and shippers must stay informed on the latest market developments to make strategic decisions. In this update, we'll examine key trends in ocean and air freight markets and discuss how FreightAmigo's digital logistics solutions can help companies adapt.

Key market highlights for June 2022 include:

• Softening spot rates on major trade lanes
• Persistent port congestion, especially on the US East Coast
• Increasing air cargo capacity as passenger flights resume
• Ongoing equipment and chassis shortages
• Labor negotiations at US West Coast ports

Ocean Freight Market Update

Asia to North America Trade Lane

The transpacific eastbound (TPEB) trade lane is seeing some easing of capacity constraints, but challenges remain:

• Spot rates have fallen below long-term contract rates for the first time since April 2020
• East Coast ports continue to face congestion and intermodal issues
• Chassis shortages and long container dwell times are impacting inland operations
• Carriers are likely to implement blank sailings to balance supply and demand
• Activity levels in Shanghai are increasing as COVID restrictions ease

FreightAmigo Insight: With spot rates softening, shippers may want to evaluate their carrier agreements and consider taking advantage of currently available capacity. Our digital platform allows easy comparison of rates across multiple carriers to find the best options.

Asia to Europe Trade Lane

The Far East westbound (FEWB) market is showing some signs of increased activity:

• Volumes are picking up as Q3 begins
• Overall market remains relatively stable without major surges
• Economic and political uncertainty in Europe is impacting consumer demand
• Rates are mostly extended going into July
• Space is starting to fill up again on many services

FreightAmigo Insight: As market conditions evolve, our real-time visibility tools can help shippers track shipments and proactively manage potential delays or disruptions.

Europe to North America Trade Lane

The transatlantic westbound (TAWB) lane continues to face capacity constraints:

• Many services are 100% utilized through end of July
• North American port congestion is improving but still not back to normal
• Equipment availability remains a major challenge, especially in Mediterranean
• Rates are holding steady with no signs of steep declines in near future

FreightAmigo Insight: With tight capacity, shippers should book well in advance and consider premium services for critical shipments. Our platform enables easy comparison and booking of premium options across carriers.

Air Freight Market Update

Asia

Air cargo markets in Asia are showing mixed trends:

• Capacity ex-Shanghai has nearly returned to pre-lockdown levels
• Rates increasing for month-end and quarter-end demand surge
• South China seeing stronger transpacific eastbound (TPEB) market
• Taiwan experiencing high demand, especially to US destinations
• Korea market remains soft despite quarter-end

FreightAmigo Insight: Our air freight booking tools provide instant quotes from multiple carriers, allowing shippers to quickly secure capacity during demand surges.

Europe

European air freight markets are stabilizing:

• Demand maintaining consistent levels
• Capacity increasing, especially on transatlantic routes
• Rate levels starting to reduce on some lanes
• Fuel surcharges expected to increase in July

FreightAmigo Insight: As fuel costs fluctuate, our platform automatically calculates and displays all-in rates, helping shippers understand true shipping costs.

Americas

Air cargo markets in the Americas remain stable:

• Capacity steady, especially to Europe
• Ground handlers busy at major US gateways
• Shanghai operations have normalized
• Rates stable week-over-week despite fuel fluctuations

FreightAmigo Insight: Our digital platform provides end-to-end visibility into shipments, including real-time updates on ground handling and customs clearance status.

How FreightAmigo Can Help Navigate Current Market Conditions

As the logistics industry continues to face volatility and disruption, FreightAmigo's digital logistics platform offers powerful tools to help freight forwarders and shippers adapt:

• Real-time rate comparisons across ocean and air carriers
• Instant booking capabilities for both standard and premium services
• End-to-end shipment visibility and tracking
• Automated document generation to streamline processes
• Data analytics to identify trends and optimize shipping strategies

By leveraging our digital solutions, companies can make more informed decisions, secure capacity more efficiently, and better manage their supply chains in today's dynamic freight environment.

Conclusion

The global freight market continues to evolve rapidly in 2022. While some trade lanes are seeing easing capacity constraints and softening rates, challenges persist around port congestion, equipment shortages, and potential labor disruptions. By staying informed on the latest market trends and leveraging digital logistics platforms like FreightAmigo, shippers and forwarders can navigate these complex conditions more effectively.

As we move into the second half of the year, we'll continue to monitor key developments and provide regular updates to help our clients make strategic shipping decisions. For the latest real-time market data and to learn more about how FreightAmigo can optimize your logistics operations, contact our team of experts today.